Payments, Standards, and Outreach Group (PSOG)

Staff at the Federal Reserve Bank of Minneapolis have conducted research on payments fraud mitigation since 2007. In Q4 2017 and Q1 2018, the Federal Reserve Bank of Minneapolis’ Payments, Standards, and Outreach Group teamed with Phoenix Marketing International to field an online survey to retailers from across the U.S. on payments fraud mitigation. The 166 respondents are drawn from the largest 12,500 largest retailers with an e-commerce presence with $25 million or more in annual sales. This merchant study complements the financial institution fraud mitigation tool effectiveness study published in Q1 2018 (see below).

This study was designed to obtain input from merchants on these and related topics:

Types of fraud that pose the greatest risk

General approaches used to fight e-commerce fraud

Anticipated increases in and causes of e-commerce fraud attacks

Tools and techniques that effectively mitigate fraud threats in the e-commerce/online sales channel

Staff at the Federal Reserve Bank of Minneapolis have conducted research on payments fraud mitigation since 2007. During July and August 2017, the Federal Reserve Bank of Minneapolis’ Payments, Standards, and Outreach Group fielded an online survey of financial institutions (FIs) from across the U.S. on payments fraud mitigation. There are 283 respondents, representing about a 5.8% response rate.

The survey report contains information about the most frequent fraud attacks by payment type – debit card, credit card, check, ACH, and wire – that FIs are experiencing and the usage and relative effectiveness of payments fraud mitigation methods. Risk mitigation methods for each payment type are grouped into three categories:

transaction screening/scoring,

authentication methods, and

other reporting and risk management methods.

Aggregate results are presented in the first half of this report. Data tables shown in the second half of the report provide results by financial institution size. A copy of this report, survey questions, and definition of terms used in the survey may be found below:

The Business Payments Coalition (formerly the Remittance Coalition)

The Business Payments Coalition is a group of organizations and individuals working together to promote greater use of electronic business-to-business (B2B) payments and electronic remittance data exchanges. Its wide-ranging goal is to improve the efficiency of B2B payments across the end-to-end process. The Coalition accomplishes this by addressing various problems and barriers that make it difficult for businesses to use electronic alternatives to paper checks and remittance advices.